China introduces new negative list for FTZ foreign investment

The State Council on June 16 released a new foreign investment negative list for free trade zones in an effort to further ease investment access.

The new management measures on foreign investment access will take effect on July 10, replacing the old one issued in April 2015.

The negative list covers 15 sectors, such as mining, leasing and commercial services, manufacturing, wholesale and retail, and financing. Among the sectors, 40 categories and 95 special management measures are included.

The negative list provides an outline of the sectors in which foreign investment is restrained and is applicable to China’s free trade zones.

According to the State Council’s circular, fields not covered by the negative list, including national security, public order, public culture, financing regulation and government purchases, should follow existing regulations.

For the non-prohibited investment sectors on the list, a foreign investment permit is necessary, said the circular.

For all industries not listed in the document, foreign investors will receive equal treatment as domestic companies in China’s free trade zones.

Investors from Hong Kong, Macao and Taiwan should also abide by the special measures and restrictions set out by the free trade zone negative list, added the circular.